Method and system for placement and pricing of internet-based advertisements or services

ABSTRACT

Presented are embodiments of methods and systems that provide for Internet advertisement pricing and placement to be variably based on the advertisement&#39;s performance within a given category of Internet media, while at the same time achieving predictable delivery and pricing for both advertisers and publishers. Techniques are presented where an advertiser&#39;s online campaign will be pre-empted only for underperformance on its own merits, and not for its relative performance or price versus other advertisers. Further, techniques are presented for allowing publishers of advertisements to realize increased revenue from their high value media while using tag passbacks to secure a minimum reserve pricing of their choice.

CLAIM OF PRIORITY

This application claims the benefit of priority, under 35 U.S.C.§119(e), to U.S. Provisional Application No. 60/707,869, filed Aug. 11,2005, and titled “Method and System for Placement and Pricing ofInternet-Based Advertisements or Services,” which is hereby incorporatedby reference in its entirety.

FIELD OF INVENTION

The present invention relates to selecting the best performingadvertisements for Internet users, and to a pricing model thatdetermines an appropriate price for those advertisements, and inparticular to pricing and ranking ads in an inventory of ads so as toachieve predictable delivery for advertisers while maximizing propertyvalue for publishers and networks.

BACKGROUND OF THE INVENTION

When advertisers purchase distribution for their ads on a web site orset of web sites, there are a few standard ways they can pay for that.The simplest models are:

1. A fixed cost per thousand impressions (“CPM model”). If an advertiserpays a fixed rate CPM (e.g., $1.00), they pay the fixed rate of $1 forevery thousand times their ad is shown (impression), regardless of userresponse rate to that ad.

2. A fixed cost-per-click model (“CPC”). If an advertiser pays a fixedrate (e.g., $1) CPC, they pay $1 every time a user clicks on that ad,regardless of the number of times the ad is shown without being clicked.

However in many situations the market value of ad space may vary. Forexample, if the ad is to be matched to a keyword on an active searchpage or in contextual advertising, then the value of that ad spacedepends on the market value for that keyword (e.g., “casino” istypically more valuable for advertising than “paper”).

As a result, auction models have become common. In this case advertisersbid on how much they're willing to pay—typically on a CPC basis—to havetheir ad shown on those pages, against that keyword or context, etc. Anad server implements the placement algorithm and is able to maximize thevalue of that ad space by selecting the highest paying ads at any giventime. In some cases the ad server will also combine performance data forthat ad (including click-through-rate (“CTR”) data, for example) withthe bid price per click to determine the effective CPM (“eCPM”) rate foreach ad, and then choose the highest eCPM ads. Or combining withpurchase or other conversion data to establish a cost per action(“CPA”), and then include CPA values among the selection process. Ineither case the ad selection formula typically relies on anauction-based marketplace. The term eCPM is an industry standard knownto persons of ordinary skill in the art. As is readily understood by aperson of ordinary skill in the art, CPA is also known ascost-per-conversion, or cost-per-sale.

The eCPM value reflects what the equivalent CPM is if the pricing modelis based on CPC or some other non-CPM model. For example, a CPC ratemultiplied by the ad's click-through-rate multiplied by 1000 yields theeCPM for that ad based on its response.

eC P M = C P C * C T R * 1, 000; or${{eC}\; P\; M} = {\frac{Cost}{Click}*\frac{Click}{Impression} \times 1,000}$

Auctions provide a means for extracting appropriate market value for adspace, but they also create problems. For example, when advertiserspurchase a fixed CPM or CPC campaign to distribute their ads with apublisher or media company, they know that they will get thatdistribution or otherwise there was an issue with the vendor. In anauction marketplace the advertiser does not have the same clear contractwith the publisher, since other advertisers may outbid them for thedistribution at any time. As an example, if the advertiser wants to runa campaign that generates 30,000 clicks in a month within a budget of$15,000, then they might bid a maximum CPC of $0.50 per click, theymight start off getting the 1000 clicks per day that they want, then afew days later suddenly drop to 100 or 0 clicks per day when their ad ispreempted by a higher paying advertiser. At that point they have toadjust their bid to a higher per click rate to restart the campaign(risking exceeding the original advertising budget), or move thecampaign to another publisher, etc.

As such, fixed price models are good for advertiser predictability butbad for publishers and networks looking to maximize the value of dynamicproperties. Auction models are good for publishers and networks' abilityto maximize value, but bad for advertiser predictability. Advertisersgenerally prefer to pay based on a CPC rate, thus assuring they pay onlywhen users show interest in their ad and generate a response.Inapposite, publishers like to be paid on a CPM basis, thus providing amore predictable return—publishers know how much traffic they get totheir site (how many pages they serve to their users per-day orper-month); so on a CPM basis they can predict revenue independent of anadvertising campaign performance.

Furthermore, the ad traffic generated by users visiting publishers'sites can be anywhere from a very low value to a very high value foradvertising. Even within a single publisher the value of trafficgenerated often has a range of value to advertisers. However, without anability to classify that traffic into different groups that separate thehigher from the lower value traffic, publishers typically must strikesimplistic CPM deals with the networks that deliver advertisements.These deals provide publishers with a flat CPM rate that does not givepublishers upside on their higher value traffic.

Further, missing from the art are methods and systems for placement ofinternet advertisements or services that provide publishers an upsidevalue on their higher value traffic, and provide publishers with a morepredictable return. The present invention can satisfy one or more ofthese and other needs.

SUMMARY OF THE INVENTION

The present invention relates to a method for pricing and ranking ads inan inventory of ads that achieves both predictable delivery foradvertisers and maximized property value for publishers and networks.

In accordance with one aspect of the invention, a system sets ad pricesto be variable based on ad performance. This internet-based system forpricing advertisements, comprises an Internet property, operated by apublisher, that contains at least one page capable of displayingadvertisements. Advertisement performance metrics to classify Internetad traffic into performance groups that are associated with a minimumprofitable eCPM amount. A rule base associates particular ads in anadvertisement inventory to at least one ad traffic classificationperformance group, and further associates each of the particular adswith a minimum price and a maximum price. An ad server receives arequest to deliver an ad, and consults with a classification system todetermine the performance group corresponding to parameters of the adrequest. The rule base is applied to the advertisement inventoryassociated with that performance group so as to select one or moreassociated advertisements, and deliver the one or more advertisementsfor display on the Internet property page. A historical statisticsrepository Includes the historical performance of each advertisement inthe inventory associated with an ad traffic classification. A pricingand optimization engine applies these historical statistics to establishthe current performance of each ad in each performance group, comparesthe current performance to an expected performance, establishes a newprice between the minimum price and the maximum price.

In accordance with another aspect of the invention, an Open PurchaseOrder ad server maintains the profitability of the publisher and networkeven when a publisher's agreed CPM or eCPM rates cannot be delivered bythe network.

These and other aspects, features, steps and advantages can be furtherappreciated from the accompanying figures and description of certainillustrative embodiments.

BRIEF DESCRIPTION OF THE DRAWING FIGURES

FIG. 1 is a flow diagram illustrating steps in accordance with anembodiment of the invention;

FIG. 2 diagrams a conventional workflow among a publisher, an ad server,and an ad inventory to deliver an ad to a user;

FIG. 3 illustrates a workflow delivering an ad to a user after a tagpassback from an OPO Network's ad server in accordance with anembodiment of the present invention;

FIG. 4 illustrates a workflow delivering an ad to a user by an OPONetwork's as server in accordance with an embodiment of the presentinvention;

FIG. 5 depicts the high level business relationships and interactionsamong an advertiser, a publisher, and a network in accordance with anembodiment of the present invention;

FIG. 6A depicts a conventional relationship between a publisher and anetwork;

FIG. 6B depicts the relationship between a publisher, an OPO Network,and a conventional network in accordance with the present invention;

FIG. 7 depicts components of an exemplary environment in which processesembodying the invention can be implemented;

FIG. 8 is an exemplary GUI for interaction with a publisher to create anew tag on an OPO Network;

FIG. 9 is an exemplary GUI for interaction with a publisher to set theirprice for a new tag on an OPO Network;

FIGS. 10 and 11 are exemplary GUIs for interaction with a publisher toregister their passback tag on an OPO Network;

FIG. 12 is an exemplary GUI for interaction with a publisher to retrievethe ad tag from an OPO Network for posting on their web site in order toenable the OPO Network functionality in accordance with one embodimentof the invention;

FIG. 13 an exemplary GUI for interaction with a publisher on an OPONetwork to setup additional business rules;

FIG. 14 is an exemplary GUI for interaction with a publisher to view andmanage the performance of their ad tags across different performancegroups; and

FIG. 15 is an exemplary GUI for interaction with a publisher to view andmanage an advertiser and publisher referrals system in place on an OPONetwork.

DETAILED DESCRIPTION OF THE ILLUSTRATIVE EMBODIMENTS

By way of overview and introduction, presented and described areembodiments of a method and system that prices and ranks ads in aninventory of ads. Different embodiments interrelate at least thefollowing elements:

1. One or more internet publishers or properties that contain pageswhere ads may be shown

2. An inventory of ads available to he shown on those properties

3. A rule base that may be used to match particular ads in the inventoryto particular classifications of ad traffic

4. A classification system that may be applied to a set of properties orpages

5. A set of prices that correspond to each class in the classificationsystem

The term “ad traffic” has the meaning of a real time series of requestsfor ads or ad impressions generated by end-viewers of advertisementsfrom their Web browsers, or other Internet content access device.

With reference to FIG. 1, process 100 embodies the classificationsystem. Process 100, at step 110, classifies by the topical category ofthe page (e.g., by the page content). For example if the content of thepage generally discusses baseball then baseball can be its category.However, the classification system is not so limited, and other methodsand approaches to classifying the category of the page are within thescope of the invention. These other classifications can include, but arenot limited to, combinations of the page address or Internet domainname, the dimensions of the ad space to be filled, the type of ad mediathe publisher has allowed to fill the ad space, the time of day, day ofweek, or other time-based criteria, the geographical information aboutthe end-viewer's location or web server's location, and user demographicdata. It is also specifically noted that the classification system doesnot require any user-based data or user demographic data in order toachieve valuable classification of traffic, although as mentioned thisdata can also be included according to the discretion of the partiesinvolved.

The rule base contains rules that match each ad in the inventory to aclassification of the ad traffic such as a contextual category of thecurrent page determined by a real-time contextualization process. Inother embodiments these rules match ads to keywords, or to a combinationof categories and keywords, or match ads to other features, andcombination of features, as mentioned earlier regarding trafficclassification methods. The set of prices contains a minimum CPC pricefor each category in the classification system. The network and adserver use a CPC pricing model for ads.

At step 130, the ad server prices the same ad differently according tothe category of the page. This results from the ad server running analgorithm embodying the invention which ensures that the CPC assigned bythe ad server to each ad delivered to the page is above the minimum CPCfor that page's category. In a further embodiment, the ad server alsotracks the historical performance, step 140, of that particular ad whenplaced on pages within the same category of page, to better ensure aprofitable eCPM. If the ad is getting a lower than expected CTR then thead server increases the CPC for that ad in that category, thereforeraising the eCPM.

Advertisers are able to manage their customer acquisition budget byspecifying a maximum price that they are willing to pay per click foreither a particular ad, or for that particular ad when delivered/placedon a particular category of page. The ad server, through the algorithm,increases the CPC for that ad only up to the maximum specified value,and then pre-empts the ad from being shown in that category if the eCPMis still below the target for that category. An incremental increase ofthe CPC can be specified by the advertiser, and the ad server continuesto monitor the ad performance. The CPC for the ad can then be raised inincremental steps if the CTR remains non-competitive for that categoryof page. As long as the CPC price set by the ad server is greater thanthe established minimum price per category, and that the price is notmore than the maximum CPC price specified by the advertiser, then thatad remains placed.

This process through the algorithm achieves:

1. Ad pricing that changes according to the classification of the adtraffic in which the ad is shown

2. Ad pricing that changes according to the historical performance ofthat ad in terms of its rate for generating positive user response suchas clicks or sales.

3. Automatic removal of ads that do not meet both the advertiser'sbudget and the publisher's and/or network's market value for its pages.

Other embodiments are within the scope of this description and include,but are not limited to, the following embodiments.

An embodiment where the classification system classifies by website,publisher “account” on the ad server, and/or by “publisher domain”(e.g., all *.yahoo.com pages may be classified under the yahoo.compublisher domain). This embodiment allows minimum prices to be set on aper-publisher basis, separately or in conjunction with the pageclassifications. In a further embodiment, a minimum price per-ad formatis set on a per publisher basis. Here the different “ad formats” aredifferent formats for presenting the same ad content, e.g., differentsizes and orientations. Further, the rate may be set per-area of thepage, e.g., top, bottom, and so forth.

In another embodiment, the classification system can classify on a timebasis—e.g., time of day, day of week, month, holidays, and so forth.Classification parameters can further include user-based informationsuch as recent pages viewed or user demographic classifications.However, these user-based classifications are not necessary for theoperation of the present invention.

A minimum price and expected ad performance in one or more classes of adtraffic are established by an advertising network in a manner where thatprices are known to be profitable for both the publisher and thenetwork. A maximum price for the ad in each class of traffic isestablished by the advertiser, such that the ad campaign is alsoaffordable to the advertiser. The actual price charged to the advertiseris revised by the network on a regular basis according to the ad'sperformance, where the actual price remains within a range between theminimum price and a maximum prices. Thus, publisher profitability andadvertiser affordability are assured. The ad is pre-empted only forunderperformance on its own merits, e.g., there is no possible pricemeeting the requirements of the publisher, the advertiser, and thenetwork.

In another embodiment, a method maintains the publisher's and network'sprofitability even when the agreed upon publisher's CPM and/or eCPMrates cannot be delivered by the network. In accordance with thismethod, a network called an Open Purchase Order Network (“OPO” Network)negotiates a CPM rate with the publisher that is higher than the CPMrate the publisher is currently paid for their traffic by anothernetwork. The OPO Network classifies the publisher's traffic into higherand lower value traffic for advertising, delivers the ads to thepublisher, and pays the agreed higher CPM for the higher value traffic.The OPO Network also passes back to the publisher that portion oftraffic for which the network cannot profitably pay the agreed CPM. Thepublisher then in turn gives that passed back traffic from the OPONetwork to a conventional network that pays the publisher the previouslyagreed lower CPM rate. According to this method the publisher increasesits revenue without risk, and the OPO Network gets the first right ofrefusal on all traffic sent by the publisher, which previously wentdirectly to the conventional ad network.

In another embodiment the classification system extends beyond pageclassification to include broader “ad traffic” classification. “Adtraffic” is actual real time series of requests for ads generated byusers (end-viewers of ads) from their Web browsers or other Internetcontent access device. Where navigation information from users generatespages through static criteria, ad traffic develops a dynamic criteriawhich combines page identification with user based classification andtime factors (e.g., time of day, day of week, date range, holidays). Adtraffic also can account for the quantity of unique users getting thead. The number of times a user has had an ad delivered is monitored, andthe ad can be stopped to prevent repetitive placement of the ad to auser—this is commonly known as frequency capping. Thus, ad trafficcriteria can include user-based classifications such as geographiclocation, user demographics, and the number of times that user has an addelivered by the present invention in the last day or other period oftime. It could also include time of day or day of week classifications.

A further embodiment of the invention is a method that selects from aninventory of services not typically classified as advertisements. Forexample, these services could be types of syndicated web content, oraffiliate links used in affiliate marketing. The fees for placing theservices on a page are then determined by the processes described above.

Another embodiment where a CPM “media buy” may be used to hedge theperformance of a CPC media buy. In this embodiment the pricing andplacement algorithms described above are used to place ads from the CPCinventory when such inventory is available. When CPC inventory is notavailable then ads can be shown from the fixed-price CPM inventory. Thisresults in a combination of the CPC and CPM pricing models so as topartition space for different ads based on an above/below price level orbased on the available ad inventory.

FIG. 2 diagrams a conventional process for delivering ads to a useroperating a Web browser. The user uses his browser 220 to fetch a Webpage from a publisher site 210. The publisher site delivers the pagecontent containing space for an ad, plus an ad tag. That ad tag is asmall piece of software (typically javascript) executable by the webbrowser 220. The browser executes the tag, automatically causing thebrowser to generate a request for ad content from the ad server 230. Thead server looks in the ad inventory 240 for available ads to deliver,selects one and delivers it back to the user's browser which displays ittogether with the publisher's page content.

FIG. 3 illustrates a workflow to deliver an ad to a user in accordancewith an embodiment of the present invention. FIG. 3 depicts the casewhere when the browser 320 executes the ad tag, a call is generated toan OPO Ad Server 330. The OPO Ad Server consults the trafficclassification system 390 in order to classify the act request into aperformance group. The OPO Ad Server then applies matching rules to findavailable ads for that class or performance group from the ad inventory340. In the scenario shown in FIG. 3 no suitable ads are found. Dataabout the ad request is stored in the historical statistics repository380 for later processing. The OPO Ad Server then looks for and finds apassback tag in the Publisher Passback Tags Inventory 360 (the publisherhaving previously registered that passback tag in that inventory). TheOPO Ad Server delivers that passback tag to the user's browser 320, thebrowser automatically executes that tag causing a subsequent request tobe immediately made to fetch the ad from a standard ad server 370. Inorder for the OPO Ad Server to be able to make optimized ad selections,an ad pricing and optimization engine 350 periodically fetches recentstatistics about served ads from the historical statistics repository380 and applies those statistics with the pricing rules (choosingbetween a minimum price and a maximum price) to the ads in the adinventory to update current ad pricing and activation status in eachperformance group.

FIG. 4 is a further embodiment of the present invention illustrating thedelivery of an ad to a user by an OPO network server. In this embodimentthe OPO Ad Server 430 finds an appropriate ad for the performance groupfrom the Ad Inventory 440. Data about the ad request is recorded in thehistorical statistics repository 380, this data includes informationsufficient for measuring each advertisement's performance. For example,to measuring click-through rate the data includes a record that thechosen ad was delivered, and later records that the ad was clicked.Depending on the implemented classification system the data logged canalso include time of day, geographic location, etc. The ad is thendelivered directly to the user browser 420. No passback tag is requiredin this case, and the prior art ad server is also not required. Thepublisher is paid the higher of the CPM or eCPM amount (not shown) dueto the OPO Ad Server finding a matching paid ad to show for thedetermined performance group of the ad request.

FIGS. 6A and 6B together illustrate the difference between a publisher'sbusiness relationship with ad networks under the prior art (FIG. 6A) andunder an embodiment of the current invention (FIG. 6B).

FIG. 6A depicts the conventional where the publisher 610 agrees to sendall its ad traffic to a particular ad network 620, and where the adnetwork is granted the right to deliver its ads into that traffic (i.e.,deliver its ads in response to ad requests generated by that publisher'spage views). In exchange the network pays the publisher an agreed rate.By way of example, the rate shown is $1.00 eCPM, and it is understoodthat in real terms the agreement between the publisher and the networkmight be to pay on a CPC or CPA basis or on a revenue share basis, butit is imagined that those fees generally work out to a $1.00 eCPM ratepaid to that publisher.

FIG. 6B depicts the relationship between a publisher, an OPO network,and a conventional network in accordance with an embodiment of thepresent invention. The publisher 630 sends its ad traffic to the OPONetwork 640. The OPO Network employs an OPO Ad Server to examine thetraffic in real time, and classify it into performance groups. For thatportion of traffic for which the OPO Network has an appropriate paid adin its inventory, it delivers that ad and pays the publisher at theagreed higher (e.g., $2.00 CPM rate) for that traffic. For that portionof traffic for which the OPO Network does not have paid ads to show, itinstead passes the ad request back to the publisher.

The OPO Network owes the publisher nothing for that transaction. But,the publisher is able to forward that ad request immediately to theprior art network 650 that is able to pay the publisher the same (e.g.,$1.00) baseline eCPM. As a result the publisher is able to generatehigher revenues from the same ad traffic without any increased risk, andthe OPO Network has a right of first refusal on all traffic, keepingthat portion which is of highest value and passing back the rest.

FIG. 7 depicts components of an exemplary environment in which processesembodying the invention can be implemented. Not all the components arerequired to practice the invention, and variations in the arrangementand type of the components may be made without departing from the spiritor scope of the invention. The particular component configuration is notcritical to the present invention.

The server shown in FIG. 7 is connected to a communication network thatcan be a local area network (“LAN”), a wide area network (“WAN”), theInternet, or a combination of all three interconnected by routers (notshown). A router is a intermediary communications network device thatlinks many computers through a mesh of possible connections, a routerreceives transmitted messages and forwards them to their correctdestinations over available routes. On an interconnected set ofnetworks—including those based on differing architectures andprotocols—a router acts as a link between the networks, enablingmessages to be sent from one to another. The communication links withina network typically include twisted pair, fiber optics, or coaxialcable, while communication links between networks may utilize analogtelephone lines, full or fractional dedicated digital lines includingT1, T2, T3, and T4, Integrated Services Digital Networks (ISDNs),Digital Subscriber Lines (DSLs), wireless links such as WiFi, WIMAX,GPRS, CDMA, TDMA, TSM, hybrids of the foregoing or future technologies,or other communications links known to those skilled in the art.Communication to the communication network is preferably by an interfaceunit associated with a client computer (not shown), the interface unitcan he a remote computer (not shown).

Furthermore, computers, and other electronic devices can be remotelyconnected to the communication network via a modem and temporarytelephone link. The number of WANs, LANs, and routers may be increasedor decreased arbitrarily and is independent of the spirit or scope ofthis invention.

As such, it will be appreciated that the Internet itself may be formedfrom a vast number of such interconnected networks, computers, androuters. Generally, the term “Internet” refers to the worldwidecollection of networks, gateways, routers, and computers that useTransmission Control Protocol/Internet Protocol (“TCP/IP”) and otherpacket based protocols to communicate with one another. An embodiment ofthe invention may be practiced over the Internet without departing fromthe spirit or scope of the invention. Processes embodying the inventionalso may be practiced m a peer-to-peer or grid computing architecture,without departing from the spirit or scope of the invention.

The media used to transmit information in communication links asdescribed above illustrates one type of computer-readable media, namelycommunication media. Generally, computer-readable media includes anymedia that can be accessed by a computing device. Computer-readablemedia may include computer storage media, communication media, or anycombination thereof.

Communication media typically embodies computer-readable instructions,data structures, program modules, or other data in a modulated datasignal such as a carrier wave or other transport mechanism and includesany Information delivery media. The term “modulated data signal” means asignal that has one or more of its characteristics set or changed insuch a manner as to encode information in the signal. By way of example,communication media includes wired media such as twisted pair, coaxialcable, fiber optics, wave guides and other wired media, and wirelessmedia such as acoustic, RF, infrared and other wireless media.

FIG. 7 depicts an exemplary server 721. Server 720 may operate toprovide a World Wide Web site (web site), and an email system or a shortmessage service (SMS) system, a multimedia system (MMS) for sending textand images or video in a single message, an instant messenger, and/orother message systems, among other things. When providing a web site,server 221 receives a request from a browser application of a differentdevice in the network, and in response transmits back data configured aspages. For instance, server 721 communicates pages to the user withadvertisements placed within the page according to the embodiments ofthe invention described above.

Those of ordinary skill in the art will appreciate that the server 721may include many components which are not shown in FIG. 7. However, FIG.7 shows enough components sufficient to disclose an illustrativeenvironment for practicing embodiments of the present invention. Server721 is connected to the communications network via a network interfaceunit Those of ordinary skill in the art will appreciate that the networkinterface unit includes the necessary circuitry for connecting server721 to the communication network, and is constructed for use withvarious communication protocols such as the TCP/IP protocol. Typically,the network interface unit is a card contained within server 721.

Server 721 also can include a central processing unit, a video displayadapter, and a mass memory, all connected via a bus. The mass memorygenerally includes random access memory (“RAM”), read-only memory(“ROM”), and one or more permanent mass storage devices, e.g., a harddisk drive, a tape drive, an optical drive, and/or a floppy disk drive.The mass memory stores an operating system that controls the operationof server 721. A basic input/output system (“BIOS”) is also provided forcontrolling the low-level operation of server 721. The hard disk-driveis utilized by server 721 to store, among other things, applicationprograms, databases, and program data. Among the programs and databasesstored in server 721 is the algorithm, base-rules, classifications, andadvertisement performance criteria metrics discussed above forembodiments of the invention. The programs can be stored in memory suchas RAM 716, ROM 732, or on CR-ROM 726. The databases can be stored ondisk drive 728, in database 790, or in another data store as is known inthe art.

The mass memory may include volatile and nonvolatile, removable andnon-removable media, which can implemented in any method or technologyfor storage of information, such as computer readable instructions, datastructures, program modules or other data. Examples of computer storagemedia include RAM, ROM, EEPROM, flash memory or other memory technology,CD-ROM, digital versatile disks (DVD) or other optical storage, magneticcassettes, magnetic tape, magnetic disk storage or other magneticstorage devices, or any other medium which can be used to store thedesired information and which can be accessed by a computing device.

The mass memory may also store program code and data for providing a website. More specifically, the mass memory may store applications,including but not limited to: a WWW server application, email serverapplication, and programs. WWW server application includes computerexecutable instructions which, when executed by server 721, generatebrowser displays, including performing the logic described above. Server721 may include a JAVA virtual machine, an SMTP handler application fortransmitting and receiving email, an HTTP handler application forreceiving and handing HTTP requests, and an HTTPS handler applicationfor handling secure connections. The HTTPS handler application may alsobe used for communication with an external security application to sendand receive sensitive information, such as email, in a secure fashion.

Server 721 also comprises an input/output interface for communicatingwith external devices, such as a mouse, keyboard, scanner, or otherinput devices not shown in FIG. 7. The server also supportstext-to-voice conversion, voice-to-text conversion, or both, forcommunicating with a wide variety of client machines and permittingrequests to the system and outputs of scores and ratings and otherinformation from the system to be conveyed aurally and free of the needfor a visual interface.

Data may be stored in a data store, such as, for example, database 730,to which server 721 has access. Access to database 730 can also be madeavailable to client computer 710, or any computer connected to thecommunication network. Database 730 can be a one or a combination of anyof the mass storage technologies discussed above, as is known by aperson of skill in the art.

Those of ordinary skill in the art will appreciate that client computermay include many more components than those described above. However, itis not necessary that those generally-conventional components be shownin order to disclose an illustrative environment for practicingembodiments of the present invention.

Client computer includes a central processing unit (CPU), a videodisplay adapter, and memory. The memory generally includes RAM, ROM, anda permanent mass storage device, such as a disk drive. The memory storesan operating system, a BIOS, and programs for controlling the operationof the client computer. The memory can also be loaded with clientsoftware specific to practicing embodiments of the present invention. Itwill be appreciated that these components may be stored on acomputer-readable medium and loaded into memory of client computer 210using a drive mechanism associated with the computer-readable medium,such as a floppy disk drive, an optical drive, such as a CD-ROM/DVD-ROMdrive, and/or a hard disk drive. An input/output interface can also beprovided for receiving input from a mouse, keyboard, or other inputdevice. The memory, network interface unit, video display adapter, andinput/output interface are all connected to the processing unit via abus. Other peripherals may also he connected to the processing unit in asimilar manner. For example, the interface may also be provided at aterminal, for displaying accessed data, computed scores, and so on.

It should be understood that the client machine could be embodied as anyone of a great variety of electronic devices ranging from generalpurpose computing machines such as workstations, desktop, laptop andnotebook computers, thin clients, and terminals to less general devicessuch as personal digital assistants (PDAs) or smart phones, to a specialpurpose devices such as DVB-H enabled mobile devices. Regardless of thephysical form of the client computer, it includes a local memory, aprocessor, and input/output capabilities to permit interaction with auser.

FIG. 8 is an exemplary GUI user interface that a publisher can use tocreate a new tag on an OPO Network. The GUI accepts a name for the newtag, the tag size, and assign the tag to a group for organization.

FIG. 9 is an exemplary GUI user Interface that a publisher can use toset their price for a new tag on an OPO Network. This GUI is used inconjunction with one embodiment of an OPO Network for establishing theminimum CPM or eCPM price for ads within a performance group. In thisinstance, the publisher sets the minimum price himself, empowering himto manage his own economics.

FIGS. 10 and 11 are exemplary GUI user interfaces that a publisher causeto register their passback tag on an OPO Network. In this example thepassback tags are called Alternate Tags. The publisher may specify thethird-party network where that alternate tag runs, and they may alsospecify the full content of the tag without selecting a third-partynetwork name.

FIG. 12 is an exemplary GUI user interface that a publisher can use toretrieve the ad tag item an OPO Network that the publisher would need topost onto their web site in order to enable the OPO Networkfunctionality in accordance with one embodiment of the invention.

FIG. 13 is an exemplary GUI user interface that a publisher on an OPONetwork can use to setup additional business rules for the network toapply to traffic from the publisher's site or sites. This GUI presentscompetitive blocking rules that enable the publisher to block ads fromcompetitive organizations.

FIG. 14 is an exemplary GUI user interface that a publisher can use toview and manage the performance of their ad tags across differentperformance groups.

FIG. 15 is an exemplary GUI user interface that a publisher can use toview and manage an advertiser and publisher referrals system in place onan OPO Network. In this further embodiment of the invention, eachpublisher and advertiser on the network is able to earn referralcommissions or credits on the network when they refer new publishers oradvertisers who sign up on the network. This GUI provides the publisherwith a list of other publishers on the same network that were referredby that publisher.

Thus, while there have been shown, described, and pointed outfundamental novel features of the invention as applied to severalembodiments, it will be understood that various omissions,substitutions, and changes in the form and details of the illustratedembodiments, and in their operation, may be made by those skilled in theart without departing from the spirit and scope of the invention.Substitutions of elements from one embodiment to another are also fullyintended and contemplated. The invention is defined solely with regardto the claims appended hereto, and equivalents of the recitationstherein.

We claim:
 1. An internet-based system for pricing advertisements,comprising: a classification system, including a server interconnectedwith at least one data store, a processor, and executable instructions;the data store contains an advertisement performance criteria having atleast one metric; the executable instructions are configured to accessthe advertisement performance criteria so as to classify Internet adtraffic into performance groups, wherein each performance group isassociated with a minimum profitable eCPM amount; an Internet propertyoperated by a publisher, the property containing at least one pageconfigured to display advertisements; an advertisement inventoryincluding associated with a rule base having rules operable to associateparticular ads in the inventory to at least one ad trafficclassification performance group, and further operable to associate eachof the particular ads with a minimum price and a maximum price; an adserver in communication with at least one computer having a displayscreen, the ad server configured to receive a request to deliver an ad,wherein the ad server contains executable operating instructionsprogrammed to consult the classification system to determine theperformance group corresponding to a parameters of the ad request, applythe rules in the rule base to the advertisement inventory associatedwith that performance group so as to select one or more associatedadvertisements, and deliver the one or more advertisements for displayon the Internet property page; a historical statistics repository whichincludes the historical performance of each advertisement in theinventor associated with an ad traffic classification; and a pricing andoptimization engine configured to apply the historical statistics toestablish the current performance of each ad in each performance group,compare the current performance to an expected performance, andestablish a new price between the minimum price and the maximum price;wherein the current performance and the new price yields an eCPM at orabove the minimum eCPM for the performance group, and if such price isnot possible then the pricing and optimization engine disassociates thatad from the performance group.
 2. The system according to claim 1,wherein the classification system is further configured to determine thecorresponding performance group of the ad request by applying contextualadvertising parameters; and wherein the Internet ad traffic isclassified at least according to inferences based on the content of oneof a page currently displayed on the computer display screen, and thecontent of a page previously displayed on the computer screen.
 3. Thesystem according to claim 1, wherein the new price chosen by the pricingand optimization engine is the minimum possible price that yields aneCPM amount greater or equal to the minimum eCPM for the associatedperformance group.
 4. The system according to claim 1, wherein theclassification system is operable to classify the Internet ad trafficaccording to at least one of the publisher, the internet domain name ofa requested page, the topical or contextual category of the requestedpage, dimensions of ad space on the requested page, an ad media typespecified by the publisher for the ad space, contextual keyword orkeywords on the requested page, the time of day when the request wasmade, the day of the week when the request was made, a user'sgeographical location, and the user's demographic data.
 5. The systemaccording to claim 1, wherein the classification system is furtherconfigured to classify the internet ad traffic free of any informationabout a user, and the user's demographic group.
 6. The system accordingto claim 1, wherein if a certain ad has less than a predefined number ofhistorical impressions in a particular performance group, the pricingand optimization engine fails to disassociate that certain ad from thatparticular performance group.
 7. The system according to claim 1;wherein one of the advertising performance criteria metrics is aclick-through rate (CTR).
 8. The system according to claim 1; whereinone of the advertising performance criteria metrics is a cost per action(CPA).
 9. The system according to claim 1, wherein the minimum price isset by an Open Purchase Order (“OPO”) network.
 10. The system accordingto claim 1, wherein the minimum price is set by the publisher.
 11. Asystem of serving ads on an Internet site, configured such that apublisher is ensured a minimum predictable revenue while also offeringthe publisher higher revenue for its higher value traffic, the systemcomprising; an Internet property, operated by the publisher, containingat least one page where an advertisement can be inserted for display; adata store containing at least one advertisement performance metric; aclassification system operable to classify Internet ad traffic intoperformance groups, wherein advertisement performance within eachperformance group is measured independently of advertisement performancein other performance groups; a publisher-rules repository containing apublisher's minimum eCPM price per performance group for ads deliveredfor display on that publisher's site by an OPO ad server, and furtherincluding one or more passback tags associated with the publisher; adata store including an inventory of advertisements; a rule base havingrules operable to match particular ads in the inventory to particularclassifications of Internet ad traffic; wherein each particularadvertisement is associated with one or more ad traffic classifications;a pricing and optimization engine configured to periodically update adprices in the advertisement inventory according to pricing rules; theOPO ad server operable to receive a request to deliver an ad, whereinthe OPO ad server contains executable operating instructions programmedto consult the classification system to determine the performance groupcorresponding to a parameters of the ad request, apply the ride base tothe advertisement inventory associated with that performance group so asto select one or more associated advertisements whose price is greaterthan or equal to the minimum eCPM price in the publisher rulesrepository for that publisher and performance group, and furtheroperable to deliver the one or more advertisements for display on thepublishers Internet property, or if no such ads exist then deliver apassback tag registered to the publisher.
 12. The system in accordancewith claim 11, wherein the publisher passback tag is an identical tagthat the publisher was previously running on its Internet property,thereby resulting in the publisher generating the same revenue onpassed-back traffic as was generated on all its previous traffic prior.13. A method for delivering advertisements to web pages through an adserver, comprising the steps of: classifying the web pages with aclassification system; applying rules, populated in a rule base, to aninventory of ads and a set of the web pages so as to determine a set ofavailable ads to show on the set of web pages; assigning prices tomembers of the set of available ads according to a combination of a setof prices corresponding to the result of the classifying step's pageclassification, and a historical performance of each member of the setof available ads; and ranking the members of the set of available adsaccording to at least one factor.
 14. The method of claim 11, whereinthe factor at least one of ad price, the historical performance, and adelivery volume target.